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Dodos, Dinosaurs, and soon 'Bears"...
What happens when there's no one left to sell to?
(h/t @Not_Jim_Cramer)
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What happens when there's no one left to sell to? the markets go to infinity and beyond is what happens.
100% of the people watch porn to satisfy themselves. What else is left?
The chart shows the zero bound problem that Summers has been ramblng on about.
A tough one even for Larry.
Everyone should read some papers on herding and guru behaviour in markets...
http://www.imf.org/external/pubs/ft/wp/2000/wp0048.pdf
http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2013-036.pdf
http://www.newyorkfed.org/research/staff_reports/sr561.pdf
What is really important is to recognise when a large number of market participants all have the same exit strategy.
People tend to come to the market over time as information spreads wider and wider. But once they are in the market they usually cling to a number of discrete exit strategies.
Currently hold until the taper is a very very common exit strategy. Possibly THE single most common exit strategy in the history of financial markets.
That means that when this event comes, there will simply be no liquidity on the bid. The surge to execute an exit will be much greater than the depth of the market and the market will become dysfunctional.
This is in direct conflict with the financial stability mandate of the Fed. So the Fed must try and unpack the exit event and shake out the common exit strategy. They tried this by bluffing an exit and it didn't work, it simply burnt their credibility on forward guidance.
How can the Fed get people to either a) sell before the Taper or b) hold through the Taper.
The Fed need to break the rally and kill the momentum before the Fed can exit. They need to provide space and time for hot money profit takers to rotate out and long money mutuals to rotate in.
It's incredible but DOW theory is what is driving monetary policy right now.
VERY well said OM!
good thing there are the algorithms to sell to
these weren't included in the survey
Gonna have to disagree O.M... Simply because.
A $ 4 Trillion FED balance sheet doesn't matter.. Nor will a $40T balance sheet. or a $4 Quad.. They won't ever get audited.. "What does it Matter??"
Sheeple get their SNAP. Elite get their QE.. All is well for all involved..
Time to just stop caring.
I thought zero was the new normal. From the looks of things Zero growth, zero profits and zero interest will all be seen as a relative positive in the near future. Zero will likley beat all predictions.
Not to worry. The economy is only bubbly.
We've got sudsy, foamy, frothy, and cryin' in your beer to go through yet.
The Fed will always buy your sh!t.
Keiser Report: Deadly Money Printing Sinshttp://www.planbeconomics.com/2013/11/keiser-report-deadly-money-printin...
"What does it matter"? - At some point the dollar is going to buy the same good and services as monopoly money.
I think OM nails this one. The Fed is not omniscient, nor omnipotent. The currency will fail if they break a certain (currently unknowable) threshold. They must taper at some point. Again, everyone will want out of the financial assets and into commodities (tangibles).
I think the issue is as it ever was: Getting out early is better than getting out late. In fact, late could mean there is no getting out.
"there will simply be no liquidity on the bid. The surge to execute an exit will be much greater than the depth of the market and the market will become dysfunctional."
Exactly what happened in May 2010, but It will make that event look tame compared to the elevator ride down next time.
http://www.youtube.com/watch?v=M8Roj8cBXDg
well i gave up a few years ago and just bought the dip, i haven't watched cnbc who needs them i just make sure the fed is buying all the
assets in amerika through its franchisees, its banks and kick back watching it higher and higher. kind of like bitcoin. people think since
the banks own the fed that is the relationship when in fact the fed was created and owned and the banks were created afterward.
the feds system is a mechanism to enslave a free people to debt, confiscate the country's gold and productive assets using
debt created out of thin air which creates boom and bust cycles the fed and its franchisees capitalize on until the mission
of the system is done, the people are all slaves, and all assets are owned by the fed and the banks.
kudos rothschilds you have stolen america, europe and asia next. one day someone will call it treason.
Ditto.
Your write-up and attached info invaluable.
Thx
It's incredible but DOW theory is what is driving monetary policy right now.
Clinton played this game and it was highly effective and worked for him. Y2K, dot.bomb pumping in concert with Silicon Valley, Sand Hill Road, Wall Street and Stanford to scam Main Steet. There is nothing really left except the stock market to fool the masses that it is not hopeless.
ObamaCare is about stealing as much as possible from the middle class and the upper middle class. Get your poeple - La Raza, CAIR, ACORN and any unions running healthcare in total control.
I do agree with you when looking at it from one vantage point.
However, it's all a confidence game. Nobody is going to believe the Fed now if they say they are going to taper so they should say they are going to taper in the future. Behind the scenes the future is tomorrow and they could taper to say $84/wk then $83/wk and so on for a month. After that they come out and said we tried tapering and nobody noticed - the markets held (because they didn't know).
The premise for that is that the FED wants to exit at sometime, which I don't think it will, it will be forced to against its will, by outside forces, not domestic US policy (which is a joke beyond even insanity).
I agree with what you said except there never was a plan to "taper" and there never will be. The ONLY possibility of a "taper", in my humble opinion, is when the banks say lets load up on puts and do a quick taper. Cash out and then just say we were kidding and the economy cannot support a taper and resume QE forever.
There is an obvious solution to the Fed's dilemma. Abolish the Fed.
@ Remain Calm.
Porn has a high demand and it is free! I think you have found the answer.
Soon, investors will be able to shoot their load over TSLA and I will not cost them a penny.
Really, we are in a value trap more than anything else. When every thing is free nothing has value.
Then I can tell the high class lady of the evenings that Dimon and Blankfein use to blow me and then when they are done pay them nothing, other than to offer them a towel to wipe off their face. Look forward to the new normal.
I know!! I know what will happen!!
THE FED WILL JUST PRINT MOAR INVESTORS!!
Problem solved!
damn that really made me laugh, thanks a lot : )
...and they will unload their bond purchases by selling them to the Equalization Board and the Depoartment of Equal Happiness, who will all take turns selling them back and forth, because as you know, bonds areguaranteed profit, and so they can use the proceeds to fund their operations!
... and all that selling back and forth will drive the GDP to higher highs!
"What else is left?"
Yo RC.
What's left? The horrendous shocking truth of the unreality that has been perpetuated and is continuing to be perpetuated in the name of AMERICA. The truth is, America DOES NOT support this out of control war mongering, or the take over of the world for a foreign banking empire. What is being done is being done on purpose, and NO REAL AMERICAN supports it. Not one bit of it! We want our troops to come home. All war bases closed down and all THAT support money spent to rebuild America, and to give every soul a job if they want one. A Bacon-Davis wage job!
We ALL want all the corrupted congress and senate criminals to be expelled and held for High Crimes against the USA. We do not want a puppet dicktater that is ONLY a puppet of the evil bankster empire enforced by radical armed murderous war drone slaves that have no idea what on earth they are actually doing, or for why. We DO NOT SUPPORT THIS BABYLONIAN GOVT, OR ANY OTHER WORLD BABYLONIAN GOVT that respectfully holds money up higher, than it's own people.
Let peace and sanity find it's way in a jungle of ignorance and slavery to the babylonian money god.
NO MORE PROFITING FROM WAR!!!!
"What's the one word that best describes the world's horrendous ever darkening situation?
Nearly 8 years into the most inhumane, horrific and devastating occupation in modern history, and the people of Iraq still know nothing of even the smallest glimpse of peace. Not even the tiniest smidgen of rest. The people of Iraq, Muslim, Christian, Yezidi and secular alike, are exhausted from this genocide. The new year hasn’t brought them any closer to an end of this dystopian nightmare; it has brought more of the same terror, more of the same barbarism, more of the same Zionism."
http://lupocattivoblog.com/2011/01/22/occupied-iraq-new-year-same-zionism/
We fucked up when we took out the chemical weapons using, Kurds did not like him, dictator that was running the place before. All you need to do now is find a new one and everything can go back to the peaceful and less deaths that happened during the Iraq and Iran war. How many people died during that almost decade?
Very well said.
The only thing I might add to it is the reason those 1 to 2 thousand deaths are occuring in Iraq each and every month since we "pulled out" is because we have a multi-billion dollar U.S. embassy still over there entombed in jersey walls and protected by none other then the largest mercenary force ever on the planet.
Boone T. Pickens keeps bitching about the fact that the Iraqis need to come clean in giving the U.S. oil companies a much larger share of the oil wealth... If you haven't figured out why those bombs keep going off every day in that COuntry after we "left" -now you know. Same guys that Boone T. keeps bitching gave them their "freedom" are the same cast of characters continuing the pain and anguish campaign in their further destruction as retribution and payback for not getting more of the prize.
And this all started 10 years ago because the Sunni leader of that Country that the U.S. Government put in place in the 70's to serve there interests including a war with Iran took the initiative and had the audacity for wanting to sell his oil in something other than USD?
I'll close by saying that if the American people want their Government to stop it means a trip and a stay for each and every one of us to Washington where all the "bucks stop". Until it happens you can expect more of the same and worse.
Post removed by DHS.
One more to 'The Heart'
When I mentioned each and every "slave" coming to Washington to let the power apparatus know that we can no longer tolerate it's abuse through the service it creates and protection it provides on behalf of the multinational(s) -The following is a great primer on the structure of the Grand Jury that everyone needs to familiarize themselves with and understand in order to make "any" change possible.
http://www.youtube.com/watch?v=66DY0rVoG00#t=1019
Fuck bacon-Davis. It's part of the central planning corrupt tyranny that got us here.
when the buyers all vanish, a rainbow will appear over wall street. harp music will overcome the incessant beeping of cars and gold coins will pour onto the streets of manhattan.
Ice hockey
as long as they can print money, nothing can stop them. The market will go up, simply because they can buy. The end will only come, when the moneyprinting stops, or the faith in the paper money regime stops.
This might not end with a stock market fail, it could as well be a currency crisis, look at the stock market graph for Zimbabwe!, except in this case it is going to be pretty much global.
However, end, it will.
The fun part is that when a currency crisis hits, it will become even more popular for stocks to not pay a dividend, as the dividends will just be toilet paper by the time they reach the shareholders, so the whole market will become a zero sum game that everyone throws all their currency into before its value drops to zero, only to have the whole market eventually drop to zero as well, when the governments need something to confiscate to distribute to each according to their needs.
Exactly! A run on the US dollar would ruin the Fed's plans.
They'll say they never saw it coming when of course they did know it was highly risky.
Um, the exact opposite. Assuming people who are bullish are already in the market (if your sure the market is going up you buy), then when bears hit zero, there are no more buyers, everyone is already in the market and is only a potential seller. When there are no more buyers and only sellers the market craters... Fast.
"When there are no more buyers and only sellers the market craters"
For now there are plenty of buyers as the market continues to rise. If Equities to rise, the money is coming from other investments (likely savings, & bonds that offer no yield or negative real yields). I also bet investors are no longer piling into rental real estate. When Yellen takes over and doubles QE then equities will get a booster.
The Business Journals’ Washington Bureau Chief Kent Hoover wrote on Nov 18, 2013, that although the Dow Jones Industrial Average topped 16,000 that Monday morning, which was good news for millions of investors in the U.S., Americans owning stocks has hit a low.
“More than half of Americans -- 52 percent -- say they own stock, mostly as part of a mutual fund or retirement account, according to a Gallup survey conducted in April.”
That’s the good news.
“The bad news,” wrote Hoover, “is the percentage of Americans who own stock is the lowest it's been since 1998. So fewer Americans are benefiting from the stock market's gains.”
Hoover reported that “until 2009, at least 60 percent of Americans reported they owned stock,” according to Gallup. “The financial crisis, a deep recession and a near-doubling of the unemployment rate changed that.
"Stocks also took a hit then, of course, but Americans aren't returning to the stock market despite its healthy rebound. To Gallup, that suggests the big issue isn't stock performance; it's the inability of many Americans to afford stock investments.
“The biggest declines in stock ownership have occurred among Americans in the 30-49 age range and middle-income Americans, Gallup reports. That suggests their incomes are so squeezed that they can't afford to invest in their future, and that high unemployment is making them nervous about losing their jobs, if they haven't lost their job already."
And stocks just keep getting more expensive...
http://www.bizjournals.com/bizjournals/washingtonbureau/2013/11/18/dow-tops-16000-for-first-time-but.html
"Stocks also took a hit then, of course, but Americans aren't returning to the stock market despite its healthy rebound. To Gallup, that suggests the big issue isn't stock performance; it's the inability of many Americans to afford stock investments."
The stock market has crashed twice in 6 years. People don't like getting burned again and again.
I was just trying to explain why sentiment is a contrarian indicator. It does not reflect people who will buy. It reflects people who already have. Put another way when there are no more bears there is only one way sentiment can go and that is increasingly bearish.
One key factor why money will be leaving the U.S. stock market is baby boomers, the first of whom are now 67 years old and in need of their retirement savings.
Auren Hoffman, founder and CEO of Rapleaf and venture partner at Founders Fund, wrote in September of 2012 in Forbes:
"Retail investors, via their 401(k) retirement plans and pension plans, are one of the largest groups of investors in public stocks. One of the big reasons the market has been flat over the last 15 years (and not collapsed) is because so much retirement money has come into the market. Most of that money is held by people who are close to retiring and will likely be coming out of the market, albeit slowly, over the next 30 years.
"Asset allocation would suggest that people should shift away from equities as they get closer to retirement. I don’t have data on this, but I would guess that most boomers still have over 50% of their portfolio (excluding real estate) in equities (even after the 2000 and 2008 crashes). This is way too high. Since many of these people are counting on the retirement income to live, they might flee from the volatility of the stock market and move to safer investments.
"Robert Arnott, chairman of Research Affilitates (and an asset manager for PIMCO), recently said: 'The ratio of retirees to active workers in the U.S. will balloon. As retirees sell stocks and then bonds to support themselves, there will be fewer younger investors to buy those securities, keeping a lid on prices.'”
http://www.forbes.com/sites/ericsavitz/2012/03/21/6-reasons-why-i-dont-invest-in-the-u-s-stock-market/
"One key factor why money will be leaving the U.S. stock market is baby boomers, the first of whom are now 67 years old and in need of their retirement savings."
For now, Boomers are opting to work into their retirement years so they are postponing draw downs in their savings. Most of the boomers that I know don't have enough savings and can't live off SS. So they are contining to work. The only people seeking retirement are the unemployable and have no choice.
""Asset allocation would suggest that people should shift away from equities as they get closer to retirement. "
That was when savings had real postive yields. I think boomers will just slowly draw down their equities as the need them and not choose to sell them and park money in a savings account. I just don't see people piling into saving or money market accounts when they lose money. This will be especially true if the banks start charging customers for deposits. Which is less volatile, stocks or bonds? Bonds are so over valued they are as risky as equities if not more risky.
Question: During Period of high inflation do markets dip, or do they just melt up. I suspect then when investors no longer see debt or savings to be a workwhile investment, they all pile into Equities. First the pile in to get yeild or at least avoid real negative interest rates. Later nobody sells because there is notihng else to invest in that will hold value. Is the inflation genie about to leave the bottle?
Problem is, the "Greatest Fool" has a printing press.
The American voter?
"What happens when there's no one left to sell to? the markets go to infinity and beyond is what happens."
With the existence of central banks, how can there ever be no one left to sell to?
And the earth - quakes
Then you know....you have no one to sell to
It's a simple Econ 1A problem. Huge supply and no demand. In my book that means the price goes lower, much lower. Can stocks go to zero?
They will sell to the Fed...
Beat me to it.
they're selling to the fed right now. no?
Not entirely. Panic created elsewhere and chases capital. There will be buyers and sellers as long the global hot potato game can continue.
"They will sell to the FED."
That would actually be a brilliant strategy, from the FED's point of view. Imagine, as an emergency measure, the FED steps into provide "liquidity" by being a buyer of last resort. All the while picking up equities for a fraction of their previous highs. Boom! Overnight the FED becomes the largest shareholder of the SPX and DOW.
All the while picking up equities for a fraction of their previous highs. Boom! Overnight the FED becomes the largest shareholder of the SPX and DOW.
That sounds earily familiar. France/England and a certain media owner come to mind for some reason.
No-bama paints another red line?
Yellin ain't Sellin
Sounds like the punch line of a Jazz number, designed for audience participation.
Ella doing Jazz at the Phil in the late 40's Milestones
Dodos and Dinosaurs and 'Bears"...oh my!...I don't think we're in Kansas anymore Toto....
To the moon, Alice!
What happens when there's no one left to sell to?
They write people off = WAR & REVOLTS
Investors intelligence?
In this market?
Prime example of an oxymoron.
Dual mandate.
Policy tool.
Efficient market.
Fundamental analysis.
Yep...this market is bullish on oxymorons.
For the FED:
Politics man, if you’re holding onto a rising balloon, you’re presented with a difficult decision. Let go before it’s too late? Or hang on and keep on rising? Posing the question, how long can you keep a grip on the rope?
Danny, Withnail & I, 1986
I like how the chart is titled Investor's Intelligence and its at an all time low
"POP"
I think the American people really did have a buyers strike this holiday season. I think "made in China" is really struggling to compete with "made in Japan" et al...I think the fantasy of the 90's is only now winding down and I think the "Fantasy Factory" that created it is in for the "rude awakening of a lifetime" once this happens. There are only so many "good ideas" and when it comes to creating demand for money and the only one that we know works is to create gold backed dollars...a return to convertibility at least. Bitcoins? you can't be serious.
There's only 1oz of gold per person on Earth. In current dollars that's about $1,300. That's not enough to back petty cash trading let alone significate trades and savings.
And don't say you just change the value of gold. It takes a little less than 1oz of gold to create a new 1oz of gold ... regardless of how you value it. That's what ultimately determines the value of gold.
There are other tangibles that can be added to that pot to increase the availability of money. There's land, energy, and spent efforts to make the land more livable.
As a function of storing energy, gold is incredibly valuable. However, energy by itself is the best currency.
I agree that energy would be a great currency since it would have the "store of value" function if not for the "convenient" function that it lacks. It also would have the divisibility, fungibility and durability functions (assuming Oil or something similar). But, it doesn't have the "convenient" (i.e. easy to carry around and/or store) function. Money has to have all of these and "currency" has all but the "store of value" function. Therefore, until you surmount that issue it can not be a currency or money. Of course they could do what they did with gold. Issue paper receipts until they eventually corrupt the market by issuing too many receipts and turn it into a fractional reserve based system again.
There was banking (loans) back in the Gold Standard days. There were also credit cycles. That's not a new invention. The FED is there to steal from the future to fund the GOV today. It's been that way since August, 1971.
If it's not enough, divide it by grams instead of troy ounces, and have each be valued highly, then you've got 31.5. Then use silver and copper for smaller denominations. This return to metal backed currencies, will produce a generation of arbitrage millionaires as the average person can't multiply or divide.
Have you ever heard of the fractional banking system? Do you think that your paper $$'s correspond to anything?? Petty cash trading even?? Your comment reveals the problem....a complete lack of understanding on the part of the average person. If people understood how the system worked there would be a revolution. Oh well...never mind......there must be something good on tv, right?
what's on television is "bitcoin." that's what people are really watching. forget "this can't last"...this "can go to the moon first"...THEN it can't last. and yes "there is a buyer on the other side offhat trade." one of the major one'e is the company itself actually. IPO activity has been off the charts...but LBO activity hasn't been. the dollar is still weak...production is absolutely soaring and inventories are literally "going through the roof." Democrats have slaughtered defense spending and Republicans have passed the biggest tax increase in history this January (repeal of the tax cut from a couple of years ago)...and now you have the ACA which is a total disaster...easily the biggest public policy blunder since Nam. Sorry but hhis is game, set, match money...though not necessarily Wall Street interestingly and certainly not Wall Street en toto. The USA has an awesome amount of "slack capacity" (private capital just lying around doing nothing) ready to be put to work. That's called new plant and equipment and the only game in town is North America...for now (maybe South Korea though. Germany is bogged down in "Europa" in my view.) "bitcoin is your tell" to me. I'll be watching Solar City and Tesla to see if that thing both literally and figuratively "goes to the moon." we've had some speculative blow offs already in certain names...one is labelled PLPC...if you've got money to throw down "looking for a double" that would be my pick.
It will be worse than that feeling you get when watching Mr. and Mrs. Smith with Jennifer Aniston...
"Investors Intelligence" = oxymoron.
Any way to stop the loud and intrusive Kyocera ads, or were they part of deal for the banning of joo bashing on ZH?
Considering the (uh) tone of your question, I shouldn't even bother replying, but I think you'd find yourself much happier with FireFox and the "Adblocker" add-on.
How is this even measured? 55% to 15%? I would argue its always been low.
It will be as if a million voices cried out in joy, and then were suddenly silent.
Yes Han.
It won't go past ONE
The FED
Trick question? We will have reached Zero Intelligence.
What happens if the market crashes and no one looks at their statement?
what happens when the market crashes and the government cancels all the trades, and reliquifies the players who are meeting margin calls?
You mean what happens when there is no one left to buy from? If everyone is bullish, no one will want to sell.
Answer: Volume goes to zero and price goes toward infinity. Then The Fed must step in as the buyer of last resort to prevent a crash from destroying the financial system.
Correct me if I'm wrong, but how can there be buyers if there aren't any sellers? Every transaction has (2) sides. A buyer and a seller. If no one is selling there's nothing to buy.
I think what's really happening is that all the big boys are taking turns in the barrel once a week or month and selling to their co-conspiritors who in turn buy their equities to keep a bid in the market. In spirit there's sellers, but that's about it.
I could see it get to where the banks issue new shares just to have something to sell one another and prop the market.
ever heard of facebook or twitter?
That's an interesting and valid point. Banks have to maintain reserve requirements, and would be the first to offer a financial instrument of that type if it could be profitable.
Banks have done exactly the opposite. They've done share repurchases, and secretly been selling/piece-mealing off their crapola portfolios at pennies on the dollar. They've also been forming ponzi shell Corps. to buy the same crap back from "Uncle Chalkie" hot dog stand extraordinaire. TOTUS<
The whole mortgage fiasco is such a joke! Japan is a perfect template for where the United States is headed.
again..."you're buying into a false narrative." the author is presenting you with choices you do not have right now. the market goes higher...therefore by definition you have someone you are IN FACT selling to. The question SHOULD BE "how do i quantify risk when the Law of Large Numbers suddenly applies?" This happened in 1999, 2007 and 1929...and in all the cases the answer was the same: "I can't." Simply put there is too much liquidity available and in order to "put it to work" i have to allow for "weirdness." (i.e. "return of the Ninja loans.") in other words you literally start converting debt directly into "free product" in order to create "a scaled economy" (i.e. "one that no longer runs on oil") and then "hopefully it works and you get ten percent economic growth without inflation." the folks who don't get it are only two classes of people: those who have mismanaged their Government Program and those that steal outright "from the wrong people." the NSA might have a new leader...but it's still the same NSA. or...in the converse...."don't look a gift horse in the mouth."
Bull & Bear has no meaning in NEW NORMAL world with all the QE addicts. BTFD
They ramp it higher so the shorts have to buy them out at the top. The few that are left. Then to the basement without any resistance. Have to get rid of anyone who would support the stock on the way down for maximum profit.
No one saw it coming.
"...[blah blah blah] unexpectedly {rose | fell | resigned | collapsed | nuked | etc.} ..."
And at the first glance I really read "surviving percent bears".
Pitchforks and torches
Zero to Hedge?
Will never happen as long as ZH exists.
Dear Central Banks,
Fuck you and your families.
Love, the Planet
Well, I'm already 75% cash.
I'll buy.
I think the traditional discount is 90% off? No?
Guys I have been full retard about a month now ever since they rang the full retard bell. I believe there is still a little bit left. It is gonna depend on the xmas season and how strong january starts.
Full retard can get even full retarder, but I wouldnt use leverage.
Eventually either full retard fails or the entire system fails.
the down votes on the zerohedge comment board should start going (more) BERSERK
The government will begin to encroach upon IRA and other retirement accounts.
Here come the theives! Here come the theives!
Sell now or forever hold your piece!
Wow. What is wrong with these people. Have they lost their minds?
ZH/TD : Custer's Last stand. The last of the Bear Mohicans!
While the Injuns circle the market with their algos and chip away one drop at a time per mosquito bite; a million a day to empty the pockets of honest bears and their pension funds or RE investors.
No more honey for the lonely bear. A market which lives for and by the algo, each one seller and then buyer to follow the peaks and hollows, by the horde, while the lonely bear or his pension fund bleeds a drop at a time; and round n round the musical chairs it goes on the music never ends.
What creates the movement ? Fear when they short, singing SELL, and greed when they yank it up singing BUY. The herd follows the sound of hoofbeats.
unless you're going to loan your gold out at interest you're just holding onto a heavy lump right now. the only play left is "short the dollar"....good luck with that. 12 million barrels of oil production coming on line by next year just within the USA alone. And if you are an oil producer you'll now have to compete with that. I say "Tesla to 400 bucks a share."
but what do the muppets think???
The best hedge fund managers to ever live bar none, John Law, say's BUY, BUY, BUY, and don't look back, pinkey promise.
We will once more see the following headline;
Russell Napier's "Most Important Chart In The World" | Zero Hedge
www.zerohedge.com/news/.../russell-napiers-most-important-chart-world
Why did you post that link? It goes to a locked page with a warning not to poke around.
What if the Fed continues the oppression and a la Zimbabwe there is nowhere else for the market to go (but up)? Yes, this is ridiculous but our beautiful country is gone. The height of the mountain of bond money that will be eviserated after it is directed into the stock market is how high stocks will go.
It means capital controls are coming which is why bitcoin keeps rippin'.
I'm surprised that gold isn't being accumulated here at home but I suppose there is no real history for it?
Stupid fuckin Boomers were never taught world history. Oh well, too late now...
"on a long enough time line....." Its getting inreasingly more difficult to reconcile a logical outcome against the backdrop of economic insanity. So that you find yourself employing coarse and simple rules that essentially speak to principles of scarcity and little else. Your use of the term "eviscerate" is a most appropriate description of what will happen to perceived value when collateral is sought in vain attempts to protect one's relative position that is trapped in a maze of complex derivative structures and an economy that stands most decidedly on pegged legs. The question in my mind is, is it even remotely possible that everyone will make the right decision everywhere and at the right time without losing the real and tangible wealth they have amassed? Of course not. Because as the nominal value of the Dow Jones or SnP goes to infinity, the real value goes to zero. That is the evil of an abused fiat. It destroys collateral through capital dislocated by speculation and zero risk interest rates (an absurd notion that the opportunity cost of money is zero) . Eventually, the real value of speculation must also necessarily go to zero - the thought of which brings to anyone conscious "an attendant senation of unease" (Michelman, 1967). Happy thanks giving.
Ah yes, the "stupid fuckin Boomers" meme. Demagoguery is the refuge of a feeble mind. As a"Boomer" I've probably forgotten more world history than a drone such as yourself could hope to learn. Your rhetoric is suspiciously analogous to the Nazis' exacerbation of anti-Semitic propaganda leading to the pogrom. The difference this time is that my type, knows all about your type and knows that we will greet the jackboots at our doors with a fusillade of high-velocity lead poisoning. I may go, but I'll take a progressive or two with me.
Yeah, nothing says superior intellect than a Nazi reference by someone who learned history from watching Hogan's Heroes and other cartoonish nonsense.
It was of course entirely coincidental that Rosa Luxemburg and Karl Liebknecht who lead the Communist Spartacist uprising in Berlin during 1918-19 just happened to be Jewish.
It was also entirely coicidental that Kurt Eisner who set up the Munich Soviet in 1919 along with his cronies Ernst Toller and Erich Muhsam all just happened to be Jewish. Once they got power, the random jailings and murders of anyone thought to be "bourgeoise" began and their possessions were confiscated.
It was also entirely coincidental that the men dispatched by the Comintern to cement power in Munich-Eugene Levine, Max Levien, and Towier Axelrod- all just happened to be Jewish. Under them the confiscations morphed into executions (including literally cutting the balls off of their opponents) and when open war with the Communists broke out in the Ruhr cities and towns they were once again busy behind the scenes. Well, except for Levine because that Communist rat was executed after capture and trial but no doubt you would consider it anti-Semitic.
In early 1919 is was Bela Kun in Hungary who once again just heppened to be Jewish while leading a Communist revolution and massacring the bourgeoise.
Who needed an "exacerbation of anti-Semitic propaganda" when the cold hard truth of the postwar years was a wave of Marxist Jews (you know, Karl Marx who entirely coincidentally just happened to be Jewish) leading the German Reds in a full blown civil war which killed tens of thousands in pitched street battles that very few Americans even know happened?
At what point does repeated occurence leave the realm of coincidence and become a clear pattern?
Yep, it's all them Jews fault. And the Aryan apologist checks in. Unlike you, I ascribe fault to people for thoughts and actions, not ethnicity. But keep going, you'll convince other purists.
hmmmm. "note to self. stop throwing Karl Marx's name around like he was a cute and cuddly bearded feller."
Register The Tribe, not Gunz.
When Gunz are outlawed, only The Tribe will have Gunz.
Pro-gun is good in my book.
http://forward.com/articles/169077/jewish-gun-leaders-come-out-firing/
http://jewishmarksmanship.blogspot.com/
http://www.jewsdontshootguns.com/
http://www.armedcandy.net/search/label/GAB
http://en.wikipedia.org/wiki/Jews_for_the_Preservation_of_Firearms_Owner...
These faux-Hebrew Khazarian Babylonians have been masquerading as Jews for centuries. They are the international banksters and are the fount of all the wars and economic woes of the Western World for many centuries now.
Even the Eastern nations have fallen prey to their fractional reserve and central banking scams and eventually, like The West, will be consumed by the debt-money scheme and will collapse into mathematically certain economic dissolution.
Christ warned us: In the latter days; "Beware of those who call themselves Jews,...but are NOT Jews".
Their bloodlines go back through Khazaria, through Babylon, into the southern kingdom of Judah, but they are far from the people of the old testament. They are ideologically founded in the evil Babylonian Talmud, having abandoned Moses and The Prophets for the twisted, hate-filled, satanic, renderings of ancient Babylonian Rabbis. They publicly reference the God of Abraham, Isaac, and Jacob only to deceive the goyim and provide protective cover for their satanic masquerade.
They are the deluded imps and useful idiots of Appollyon, The Destroyer. They are not unlike their half-brothers, the satanically-inspired muscum, in their dark delusion.
They inevitably even destroy themselves by their own insatiable greed and power mongering overreach.
You had me until you quoted the God son. Who knows what he said, if he said it and most importantly if he said which type of Jew he was referring too. There are countless frauds on this planet who consider themselves Jewish, half Jewish, descendents of this or that. It's all bullshit! Try and trace bloodlines back thousands of years. Uhh, I think I have some Eskimo in me today. Yesterday I was sure to have felt my inner Egyptian. Tomorrow I could be a South African Jew.
Geneaology is still only scratching the surface in terms of the research into our past(s). Maybe one day in the future when Bernanke & Co. are dead someone will exhume their remains and do a test on them only to find they're either aliens or a bunch of stinking lyin' Cossacks.
Get off my lawn, you punks!
(I'm a boomer, too, so don't make us all look like old cranks!)
And here I thought you were a young crank.
http://srsroccoreport.com/
no, it leaves moar Au for ZHers
Goldman Sachs will work with the FED to counterfeit shares of corporations.
"What happens when there's no one left to sell to?"
there is no one left to buy from.
:)
BLACK HOLES > Bitchez
When you no longer have a free and unfettered market, such as the one we have now, then the level and increasing rate of change of immiseration of main street will be an inverse relfection of the increasing gains enjoyed by Wall street. As the $USD goes to zero so too will the economic welfare of the middle class while Wall street usurps every last bit of tangible value from everybody and everything. Aint it great?
And everything is climbing nicely to infinity until something happens.We don't know when or what or how except that it is called " a black swan event."
The stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.
www.marketoracle.co.uk/Article40231.html
It's 2:33 in London. You're an up and comer. You have "thoughtfull" artistic tallent. <am I wrong?
The same thing that happens when VIX goes to zero.
If I were you, I would use this chart.
http://www.bloomberg.com/apps/quote?ticker=CRY:IND
http://www.bloomberg.com/apps/quote?ticker=VIX:IND
http://www.bloomberg.com/markets/commodities/futures/
http://www.bloomberg.com/quote/GACGB10:IND
http://www.bloomberg.com/quote/GBTPGR10:IND
http://www.bloomberg.com/quote/.SPGERSP:IND
http://www.bloomberg.com/quote/TRAN:IND
http://www.bloomberg.com/quote/UBSC11R:FP
http://www.bloomberg.com/quote/SPY:US
http://www.bloomberg.com/quote/NYP:IND
http://www.bloomberg.com/quote/USGG10YR:IND
http://www.bloomberg.com/quote/SHCOMP:IND
http://www.bloomberg.com/quote/SPGSCI:IND
http://www.bloomberg.com/quote/GJGB10:IND
tyler, there was a nice graph for zimbabwes historical stock chart.
WE PARTY!
Here's a new idea. Somebody create a new exchange with all the bullshit stripped out where you can buy a stock that is a share in an actual business in which you can trust that lets one invest in, and share in the profits of, or losses of an actual business.
There's a fine line between honesty and reality. That toilet paper keeps getting MOAR soft!
I think we are going into the single digits first before the downside begins- 5-7% is my guess. Probably right before year end. The Big Zero will probably sign something in at midnight on the 31st as well....
One of the best charts Ive seen in a very long time - had no idea it was this low.....
Butt...
The markets crashed after there were big spokes, where the spoke !, it's just dropping lower and lower. It's just not following the patterns of all previous patters.
They have already shown they can paint the tape, they have shown they can inject liquidity at will, they have shown they can manipulate the MSM daily meme.........What more evidence do you need to know they can make this go on until the first nuke strike? Or tail-end natural disaster?
Computer algos RUN the market. A programmers dream!
And the watchers are watching porn. No one cares.
It's that simple.
Sentiment no longer matters. The Fed is the buyer of last resort. So when 100% of everyone is buyers, when they go to sell the fed will be there to support them. Couple that with a market with investment money that keeps pouring in from the Fed, and you have a perpetual motion machine. Sure, it will come to an end, but only after everyone is paid in worthless dollars.
Faith will determine the question of when. You don't need hyper-inflation to tip the balance in favor of panic, just enough people wanting out before they are ruined and in so doing ruin themselves faster. The only way to win is to stop playing at all. There are other profitable endeavors that require more work but have much less risk.
Man, even the Italians got tired of Benito.
the fed regurgitates the feed.
"What Happens When This Chart Hits Zero?"
"What happens when there's no one left to sell to?"
The same conundrum exists if one asks "What Happens When Trust In Banks Hits Zero?"
One answer to these questions is that investment money and savings HAS TO go somewhere. Apart from pulling one's money out of artificially puffed up markets and the criminal banking system, and causing them all to collapse, there aren't too many options available. Regular hammering of gold is intended to discourage the waverers.
The Fed, other central banks and governments know this very well.
Gold hammering just means cheaper gold for those who truly want it.
At the same time it scares away all the paper speculators.
So what happens when there's noone left to hold the long side of fraud paper gold contracts?